Are commercial investments in land improving wage-labour opportunities and helping to diversify household economies in rural areas?

Abstract

The Government of the Lao PDR promotes commercial investments in land (CILs) as a driving force of economic growth, a source of vital tax income, and a lever for transitioning from a subsistence to a wage-based economy. Assessment of official data shows that the employment creation benefits of CILs are limited and often not fully compensating their negative impacts, such as land dispossession and reduced access to natural resources. The assessment leads to the conclusion that economic development policies should focus on the compliance with regulations, the development of skills and the diversification of rural economies, rather than simply on the transition to a wage-based economy.